Housebuilders’ Costs On The Rise

 Housebuilders’ costs increased by 1.7% in 1Q 2021 and by 3.6% between 1Q 2020 and 1Q 2021 according to the BCIS Private Housing Construction Price Index (PHCPI). Housing construction output grew by 2.7% in 1Q2021 compared with the 4Q 2020 but fell by 1.2% on the annual basis. Majority (94%) of respondents to the survey reported increases in costs. Of those, 44% stated increases in cost of materials, 37% indicated changes in both labour and material costs, 13% stated sub-contractors’ costs while 6.0% indicated labour costs. Insulation, aggregates, timber and timber products, steel as well as shortages of building materials, higher costs of transport, energy and labour costs/availability remain among the key cost pressures mentioned by respondents. Read more on the RICS website.

https://www.rics.org/uk/products/data-products/insights/private-housebuilders-costs-continued-to-increase-in-1q-2021/